Revenue was $130.9 million, a decrease of 13.7%, compared to $151.8
million in the previous year fiscal first quarter and a decrease of
21.3% compared to $166.4 million in the prior fiscal quarter;

Gross profit was $61.0 million, a decrease of 22.3% compared to $78.5
million in the previous year fiscal first quarter, and a decrease of
29.9% compared to $86.9 million in the prior fiscal quarter;

Gross margin was 46.6%, compared to 51.7% in the previous year fiscal
first quarter and 52.2% in the prior fiscal quarter;

Operating loss was $23.0 million, compared to operating income of
$10.5 million in the previous year fiscal first quarter and operating
income of $0.3 million in the prior fiscal quarter; and

Net loss from continuing operations was $17.0 million, or $0.49 loss
per diluted share, compared to net loss from continuing operations of
$2.2 million, or $0.04 loss per diluted share, in the previous year
fiscal first quarter and net loss from continuing operations of
$1,000, or $0.21 loss per diluted share, in the prior fiscal quarter.

First Quarter Fiscal Year 2018 Adjusted Non-GAAP Results

Adjusted gross margin was 53.7%, compared to 57.2% in the previous
year fiscal first quarter and 58.1% in the prior fiscal quarter;

Adjusted operating income was $13.4 million, or 10.3% of revenue,
compared to $41.0 million, or 27.0% of revenue, in the previous year
fiscal first quarter and $38.0 million, or 22.8% of revenue, in the
prior fiscal quarter;

Adjusted net income was $6.6 million, or $0.10 per diluted share,
compared to $31.8 million, or $0.57 per diluted share, in the previous
year fiscal first quarter and $30.3 million, or $0.46 per diluted
share, in the prior fiscal quarter; and

Adjusted EBITDA was $20.9 million, compared to $48.4 million for the
previous year fiscal first quarter and $47.3 million for the prior
fiscal quarter.

Management Commentary

"As expected, the first quarter was challenging across the board, as we
dealt with the full impact of the geopolitical downturn in China,"
remarked John Croteau, President and CEO of MACOM. "While it is still
too early to call the exact slope of the recovery, we continue to
believe that December was the bottom of the cycle for MACOM, and we
expect demand will progressively strengthen through the remainder of the
year.

"We expect 2018 will be a transitional year in our served markets, as
the technology landscape shifts in anticipation of the next major wave
of infrastructure investments in Cloud Data Centers and 5G Telecom.
Although these shifts will likely moderate the pace of recovery, we
believe they will ultimately lead to multiple breakout opportunities
that play directly to our strengths."

Business Outlook

For the fiscal second quarter ending March 30, 2018, revenue is expected
to be in the range of $142 million to $150 million. Adjusted gross
margin is expected to be between 50% and 54%, and adjusted earnings per
share between $0.10 and $0.16 on an anticipated 66 million fully diluted
shares outstanding.

Mr. Croteau concluded, "In the December quarter, we believe we saw the
low-point in terms of market demand and revenue. Entering the March
quarter, we expect our fiscal second quarter will represent the bottom
for adjusted gross margin as we anticipate a progressive recovery in
product mix and growth in the higher margin parts of our portfolio over
the course of 2018. Longer term, we are still committed to our target of
delivering 60 percent adjusted gross margin."

Conference Call

MACOM will host a conference call on Tuesday, February 6, 2018 at 5:00
p.m. Eastern Time to discuss its fiscal first quarter 2018 financial
results and business outlook. Investors and analysts may join the
conference call by dialing 1-877-837-3908 and providing the passcode
1258889.

International callers may join the teleconference by dialing
+1-973-872-3000 and entering the same passcode at the prompt. A
telephone replay of the call will be made available beginning two hours
after the call and will remain available for five business days. The
replay number is 1-855-859-2056 with a passcode of 1258889.
International callers should dial +1-404-537-3406 and enter the same
passcode at the prompt.

Additionally, this conference call will be broadcast live over the
Internet and can be accessed by all interested parties in the Investors
section of MACOM's website at http://www.macom.com.
To listen to the live call, please go to the Investors section of
MACOM's website and click on the conference call link at least fifteen
minutes prior to the start of the conference call. For those unable to
participate during the live broadcast, a replay will be available
shortly after the call and will remain available for approximately 30
days.

About MACOM

MACOM enables a better-connected and safer world by delivering
breakthrough semiconductor technologies for optical, wireless and
satellite networks that satisfy society's insatiable demand for
information.

Today, MACOM powers the infrastructure that millions of lives and
livelihoods depend on every minute to communicate, transact business,
travel, stay informed and be entertained. Our technology increases the
speed and coverage of the mobile Internet and enables fiber optic
networks to carry previously unimaginable volumes of traffic to
businesses, homes and datacenters.

Keeping us all safe, MACOM technology enables next-generation radars for
air traffic control and weather forecasting, as well as mission success
on the modern networked battlefield.

MACOM is the partner of choice to the world's leading communications
infrastructure, aerospace and defense companies, helping solve their
most complex challenges in areas including network capacity, signal
coverage, energy efficiency and field reliability, through its
best-in-class team and broad portfolio of RF, microwave, millimeterwave
and lightwave semiconductor products.

MACOM is a pillar of the semiconductor industry, thriving for more than
60 years of daring to change the world for the better, through bold
technological strokes that deliver true competitive advantage to
customers and superior value to investors.

Headquartered in Lowell, Massachusetts, MACOM is certified to the
ISO9001 international quality standard and ISO14001 environmental
management standard. MACOM has design centers and sales offices
throughout North America, Europe, Asia and Australia.

MACOM, M/A-COM, M/A-COM Technology Solutions, M/A-COM Tech, Partners in
RF & Microwave and related logos are trademarks of MACOM. All other
trademarks are the property of their respective owners. For more
information about MACOM, please visit www.macom.com follow @MACOMtweets on
Twitter, join MACOM on LinkedIn
or visit the MACOM YouTube
Channel.

Special Note Regarding Forward-Looking Statements

This press release and our commentary in our conference call held today
each contain forward-looking statements based on MACOM management's
beliefs and assumptions and on information currently available to our
management. Forward-looking statements include, among others,
information concerning our stated business outlook and future results of
operations, our expectations for business and market conditions,
positioning and growth aspirations in the Industrial & Defense,
Datacenter Telecom, Cloud Data Center, 5G Telecom and China markets and
elsewhere, our expectation that the December quarter was the bottom of
the cycle for MACOM and the low point in terms of market demand and
revenue, our expectation that our fiscal second quarter of 2018 will
represent the bottom for adjusted gross margin, our anticipation of a
progressive recovery in product mix and growth in the higher margin
parts of our portfolio, our longer term commitment to our target of
delivering 60 percent adjusted gross margins, our belief that the next
major wave of infrastructure investments in Cloud Data Centers and 5G
Telecom in the near term will likely moderate the pace of recovery, but
will ultimately lead to multiple breakout opportunities that play
directly to our strengths, our expectation that demand and product mix
will progressively strengthen through the remainder of 2018, any
expectations as to our relationships with customers and vendors, our
future market share, the timing or nature of future Cloud Data Center
and network upgrade cycles, customer order activity and customer
adoption of our solutions, our future investment decisions, our GaN
strategy and expectations for execution on that strategy, the expected
outcome of our ongoing litigation against Infineon and any other
statements regarding future trends, business strategies, competitive
position, industry conditions, acquisitions and market opportunities.
Forward-looking statements include all statements that are not
historical facts and generally may be identified by terms such as
"anticipates," "believes," "could," "estimates," "expects," "intends,"
"may," "plans," "potential," "predicts," "projects," "seeks," "should,"
"will," "would" or similar expressions and the negatives of those terms.

These forward-looking statements reflect MACOM's current views about
future events and are subject to risks, uncertainties, assumptions and
changes in circumstances that may cause those events or our actual
activities or results to differ materially from those expressed in any
forward-looking statement. Although MACOM believes that the expectations
reflected in the forward-looking statements are reasonable, it cannot
and does not guarantee future events, results, actions, levels of
activity, performance or achievements. Readers are cautioned not to
place undue reliance on these forward-looking statements. A number of
important factors could cause actual results to differ materially from
those indicated by the forward-looking statements, including the
potential that we are unable to identify and timely enter into new
markets for our products, such as our publicly-announced market
opportunities in Cloud Data Centers, 100G optical networks, 10G PON, 25G
lasers, L-PICs, GaN technology and Active Antennas, the potential that
we are unable to timely deliver the quantities of our products targeting
these or other applications at the right price point due to design
challenges, manufacturing bottlenecks, supply shortages, yield issues or
otherwise, the potential that the expected rollout of Cloud Data Center
build-outs, 5G network upgrades, fiber-to-the-home network technology or
other new optical or other network technology deployments in the U.S.,
China, Japan and other geographies fails to occur, occurs more slowly
than we expect or does not result in the amount or type of new business
we anticipate, lower than expected demand in the Cloud Data Center
market, the optical network infrastructure market or any or all of our
primary end markets or from any or all of our large OEM customers based
on seasonal effects, regulatory action or inaction, technology shifts,
standards changes, macro-economic weakness or otherwise, the potential
for greater than expected pricing pressure and average selling price
erosion based on attempts to win or maintain market share, competitive
factors, technology shifts or otherwise, our potential inability to ramp
key new products into volume production with acceptable manufacturing
yields to satisfy key customer demand in a timely fashion, the potential
for inventory obsolescence and related write-offs, the expense, business
disruption or other impact of any current or future investigations,
administrative actions, litigation or enforcement proceedings we may be
involved in, the potential loss of access to any in-licensed
intellectual property or inability to license technology we may require
on reasonable terms, the impact of any claims of intellectual property
infringement or misappropriation, which could require us to pay
substantial damages for infringement, expend significant resources in
prosecuting or defending such matters or developing non-infringing
technology, incur material liability for royalty or license payments, or
prevent us from selling certain of our products, greater than expected
dilutive effect on earnings of our equity issuances, outstanding
indebtedness and related interest expense and other costs, our failure
to realize the expected economies of scale, lowered production cost,
increased customer penetration and other anticipated benefits of our
previously announced GaN intellectual property licensing program or
supply chain build-out initiatives, the potential for defense spending
cuts, program delays, cancellations or sequestration, failures or delays
by any customer in winning business or to make purchases from us in
support of such business, lack of adoption or delayed adoption by
customers and industries we serve of Cloud Data Centers, MACsec,
single-Lambda PAM4, MMICs, L-PICs, Active Antennas, SPAR tiles, GaN, InP
lasers or other solutions offered by us, failures or delays in porting
and qualifying GaN or InP process technology to our fabrication
facilities or third party facilities and achieving anticipated
manufacturing economies of scale, lower than expected utilization and
absorption in our manufacturing facilities, lack of success or slower
than expected success in our new product development or new product
introduction efforts, loss of key personnel to competitors or otherwise,
failure of any announced transaction to close in accordance with its
terms, failure to successfully integrate acquired companies,
technologies or products or realize synergies associated with
acquisitions, the potential that we will experience difficulties in
managing the personnel and operations associated with our acquisitions,
loss of business due to competitive factors, product or technology
obsolescence, customer program shifts or otherwise, the potential for a
shift in the mix of products sold in any period toward lower-margin
products or a shift in the geographical mix of our revenues, the impact
of any executed or abandoned acquisition, divestiture, joint venture,
financing or restructuring activity, the impact of supply shortages or
other disruptions in our internal or outsourced supply chain, the impact
of changes in export, environmental or other laws applicable to us, the
relative success of our cost-savings initiatives, as well as those
factors described in "Risk Factors" in MACOM's filings with the
Securities and Exchange Commission ("SEC"), including its Annual Report
on Form 10-K for the fiscal year ended September 29, 2017, as filed on
November 15, 2017. MACOM undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.

Discussion Regarding the Use of Historical and Forward-Looking
Non-GAAP Financial Measures

In addition to GAAP reporting, MACOM provides investors with financial
measures that have not been calculated in accordance with United States
Generally Accepted Accounting Principles ("GAAP"), such as: non-GAAP
gross profit and gross margin, non-GAAP income from operations and
operating margin, non-GAAP operating expenses, non-GAAP net income,
non-GAAP diluted earnings per share, adjusted EBITDA, and Free Cash
Flow. From time to time in this release or elsewhere, we may
alternatively refer to such non-GAAP measures as "adjusted" measures.
This non-GAAP information excludes the effect, where applicable, of
discontinued operations, intangible amortization expense, share-based
compensation costs, impairment and restructuring charges, changes in
common stock warrant liability, financing and litigation costs,
acquisition and integration related costs, other costs and the tax
effect of each adjustment. The non-GAAP information includes consulting
agreement related income associated with the Automotive divestiture.

Management believes that these excluded items are not reflective of our
underlying performance. Management uses these non-GAAP financial
measures to: evaluate our ongoing operating performance and compare it
against prior periods, make operating decisions, forecast future
periods, evaluate potential acquisitions, compare our operating
performance against peer companies and assess certain compensation
programs. The exclusion of these and other similar items from our
non-GAAP financial results should not be interpreted as implying that
these items are non-recurring, infrequent or unusual. We believe this
non-GAAP financial information provides additional insight into our
ongoing performance and have therefore chosen to provide this
information to investors for a more consistent basis of comparison and
to help them evaluate the results of our ongoing operations and enable
more meaningful period-to-period comparisons. These non-GAAP measures
are provided in addition to, and not as a substitute for, or superior
to, measures of financial performance prepared in accordance with GAAP.

A reconciliation between GAAP and non-GAAP financial data is included in
the supplemental financial data attached to this press release. We have
not provided a reconciliation with respect to any forward-looking
non-GAAP financial data presented because we do not have and cannot
reliably estimate certain key inputs required to calculate the most
comparable GAAP financial data, such as the future price per share of
our common stock for purposes of calculating the value of our common
stock warrant liability, future acquisition costs, the possibility and
impact of any litigation costs, changes in our GAAP effective tax rate
and impairment charges. We believe these unknown inputs are likely to
have a significant impact on any estimate of the comparable GAAP
financial data.

Investors are cautioned against placing undue reliance on these non-GAAP
financial measures and are urged to review and consider carefully the
adjustments made by management to the most directly comparable GAAP
financial measures to arrive at these non-GAAP financial measures.
Non-GAAP financial measures may have limited value as analytical tools
because they may exclude certain expenses that some investors consider
important in evaluating our operating performance or ongoing business
performance. Further, non-GAAP financial measures may have limited value
for purposes of drawing comparisons between companies because different
companies may calculate similarly titled non-GAAP financial measures in
different ways because non-GAAP measures are not based on any
comprehensive set of accounting rules or principles.

Amortization Expense - is related to acquired intangible assets
which are based upon valuation methodologies, and are generally
amortized over the expected life of the intangible asset at the time of
acquisition, which may result in amortization amounts that vary over
time. The expense is not considered by management in making operating
decisions, and the expense is non-cash.

Share-Based and Non-cash Compensation Expense - includes share
based compensation including awards that are equity and liability
classified on our balance sheet as well as non-cash compensation expense
primarily associated with amounts due to employees of an acquired
business that were placed in escrow at the time of the acquisition and
amortized as expense over a 2-year period. Share Based Compensation
expense is partially outside of our control due to factors such as stock
price volatility and interest rates, which may be unrelated to our
operating performance during the period in which the expense is
incurred. It is an expense based upon valuation methodologies and
assumptions that vary over time, and the amount of the expense can vary
significantly between companies due to factors that can be outside of
their control. Share-based and non-cash compensation expense amounts are
not considered by management in making operating decisions.

Impairment Charges - includes expenses associated with our
strategic decision to exit a product line and end programs with a
license and technology transfer as well as certain related fixed assets
and inventory. We believe these charges are one-time in nature and are
not correlated to future business operations and including such charges
does not reflect our ongoing operations.

Restructuring Charges - includes amounts primarily associated
with approved plans to reduce staffing and manufacturing, research and
development or administrative footprints. We believe these amounts are
not correlated to future business operations and including such charges
does not reflect our ongoing operations.

Warrant Liability Expenses/Gains - are associated with
mark-to-market fair value adjustments which are largely based on the
value of our common stock, which may vary from period to period due to
factors such as stock price volatility. We believe these amounts are not
correlated to future business operations and including such charges does
not reflect our ongoing operations.

Non-Cash Interest, Net - includes amounts associated with the
amortization of certain fees associated with the establishment or
amendment of our Credit Agreement and Term Loans that are being
amortized over the life of the agreement. We believe these amounts are
non-cash in nature and not correlated to future business operations and
including such charges does not reflect our ongoing operations.

Litigation Costs - includes gains, losses and expenses related to
the resolution of other-than-ordinary-course threatened and actually
filed lawsuits and other-than-ordinary-course contractual disputes and
legal matters. We exclude these gains and losses because they are not
considered by management in making operating decisions. We believe such
gains, losses and expenses do not necessarily reflect the performance of
our ongoing operations for the period in which such charges are
recognized and the amount of such gains or losses and expenses can vary
significantly between companies and make comparisons less reliable.

Acquisition, Integration and Restructuring Related Costs -
includes such items as professional fees incurred in connection with
pre-acquisition and integration specific activities, post-acquisition
employee retention amounts, contingent consideration adjustments,
severance and other amounts accrued or paid to terminated employees of
acquired businesses, costs including salaries incurred which are not
expected to have a continuing contribution to operations or are expected
to have a diminishing contribution during the integration or
restructuring period and the amortization of the fair market step-up
value of acquired inventory and fixed assets. We believe the exclusion
of these items is useful in providing management a basis to evaluate
ongoing operating activities and strategic decision making.

Discontinued Operations excluding consulting income - includes
the profit and loss amounts of discontinued operations, with the
exception of consulting income associated with a consulting agreement we
entered into at the time of our Automotive business divestiture. We
believe excluding gains and losses associated with historically divested
businesses from our net income provides management with a comparable
basis to our current ongoing operating activities. We do not exclude the
consulting agreement income classified as discontinued operations
because management views this income as part of our ongoing operations
and correlated with future operations since we both derive income and
incur ongoing costs associated with the consulting services available
under the consulting agreement.

Other - primarily includes transaction expenses incurred as part
of our Credit Agreement Amendments in the second, third and fourth
fiscal quarters of 2017. We believe these amounts are not correlated to
future business operations and including such charges does not reflect
our ongoing operations.

Tax Effect of Non-GAAP Adjustments - adjustments to arrive at an
estimate of our Adjusted Non-GAAP tax rate associated with our Adjusted
Non-GAAP income over a period of time. We determine our Adjusted
Non-GAAP income tax rate by using applicable rates in taxing
jurisdictions and assessing certain factors including our historical and
forecast earnings by jurisdiction, discrete items, cash taxes paid in
relation to our Adjusted Non-GAAP Net Income before income taxes and our
ability to realize tax assets. We generally assess this Adjusted
Non-GAAP income tax rate quarterly and have utilized 12% for our first
fiscal quarter of 2017, 10% for our second, third and fourth fiscal
quarters of 2017 and 8% for our first fiscal quarter of 2018. Our
historical effective income tax rate under GAAP has varied significantly
from our Adjusted Non-GAAP income tax rate. Items that have historically
resulted in significant difference between our effective income tax rate
under GAAP and our Adjusted Non-GAAP income tax rate include changes in
fair values of the common stock warrant liability, which is excluded
from our Adjusted Non-GAAP net Income and is neither deductible nor
taxable for tax purposes, income taxed in foreign jurisdictions at
generally lower tax rates, non-deductible compensation, research and
development tax credits and merger expenses, as well as the
establishment of a valuation allowance against our U.S. deferred tax
assets during the three months ended March 31, 2017. We believe it is
beneficial for our management to review our Adjusted Non-GAAP income tax
rate on a consistent basis over periods of time. Items such as those
noted above may have a significant impact on our U.S. GAAP income tax
expense and associated effective tax rate over time. Our Adjusted
Non-GAAP income tax rate is an estimate, and may differ from our
effective income tax rate determined under GAAP.

Adjusted EBITDA - is a calculation that adds depreciation expense
and consulting agreement income to our Adjusted Non-GAAP Income from
Operations. Adjusted EBITDA is a measure that management reviews and
utilizes for operational analysis purposes. We believe competitors and
others in the financial industry utilize this Non-GAAP measure for
analysis purposes.

Free Cash Flow - is a calculation that starts with cash flow from
operating activities, reduces this amount by our capital expenditures in
the applicable period and adds AppliedMicro transaction related
payments. Free Cash Flow is a measure that management reviews and
utilizes for cash flow analysis purposes. We believe competitors and
others in the financial industry utilize this Non-GAAP measure for
analyzing a company's cash flow.